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Top Part Classification Blogs 2020

Posted by Richard Turner on Jan 6, 2021 10:55:00 AM

It’s that time of year again when we send out a list of our most popular blogs and our most popular community group videos. We would like to thank everyone of our subscribers for their interest in our blogs and community group meetings - 2020 was an exciting year for us! 

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Topics: Cleansing Data, Classification, Product Analytics, Teamcenter, Part Cleansing, 2019 Blogs

7 Best Practices for a Parts Classification Project

Posted by Convergence Data Team on Nov 19, 2020 11:35:07 AM

When we talk to companies who are just starting their classification journey, we provide them with the best practice framework focused on obtaining the most value from their classification project. All too often this work is done in only one division or it becomes an “engineering searchability” project which limits the value of the project.

When making an investment in classification, the budget for this program should come from these sources:

  • Person responsible for direct material spend – VP of Operations, CFO, or CPO
  • ERP or PLM Deployment budget

7 Best Practices for a Parts Classification Project

    1. Target high value parts for classification – high spend, proliferation, too many vendors, shared across programs, etc. Start with the 10 top categories using this criterion.
    2. Pull all the parts from each organization for each category – this is the biggest bang for the buck approach.
    3. Assign one (1) Engineering SME and one (1) Purchasing Category owner for each commodity – they will approve structure and data. You don’t want too many cooks in the kitchen.
    4. For each part – provide part number, part description,
      MFG Part Number and MFG Name, drawing or specification.
    5. Obtain the commercial data for each part – provide pricing,
      supplier names, buying org and volumes.
    6. Clustering – once each category is complete, look for clustering opportunities – this will expose cost savings for procurement spend rationalization. Clustering will expose parts with higher prices compared to other similar parts with lower pricing. 
    7. Load classification data to PLM - make sure to validate the data against the PLM systems rules. This saves time dealing with load issues.
The advantage of taking this approach is that you only go into each category once. You don’t want to have to go into each category multiple times. This will allow you to have a much better chance of finding cost savings. Lastly you will be in a better position to prepare the data for your global PLM system. You don’t want to have to keep updating your PLM system with changes. The video below describes the process to prepare your classification data for cost savings and sourcing cost savings.

Here are some useful links and videos:

     • 15 min PLM Classification Process video:

     • 5 min Clustering video
 
     • 1 min Explainer video

     • DVA Case Studies
  
     • CDS Brochure

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Topics: Classification, Product Analytics, PLM, Part cost, convergence data, Part Preparation, DFR, Cost Reduction, Spend Analysis, Loading Data, Cost Savings, Part Standardization, Duplicate Analysis, data normalization, categories, classification structure, reclassify, smartclass

Top Part Classification Blogs

Posted by Richard Turner on Jan 6, 2020 11:38:29 AM

It’s that time of year when we send out a list of our most popular blogs and our most popular community group videos. We would like to thank everyone of our subscribers for their interest in our blogs and community group meetings - 2019 was an exciting year for us! 

Read More

Topics: Cleansing Data, Classification, Product Analytics, Teamcenter, Part Cleansing, 2019 Blogs

Effective Price Benchmarking

Posted by Richard Turner on Dec 8, 2016 11:15:00 AM

Everyone is trying to determine what competitors are charging for their products through competitive benchmarking but will that really help you make a bigger profit? Maybe, but the real gold is in your existing purchase parts. Use the data you already have in house and compare purchased part costs that your company has incurred over the past two years. This data will allow you to truly increase your profit regardless of competitor pricing.   Price benchmarking looks outward but for optimal profit you must first look inward.

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Topics: Cleansing Data, Product Analytics, Manufacturer Parts, Part cost, Benchmarking

4 Key Factors to a Successful Part Cleansing Project

Posted by Alison Luna on Nov 9, 2016 10:47:45 AM

As Steven Covey noted in 7 Habits of Highly effective people  you should begin with the end in mind.  When starting a direct materials data cleansing project, you need to ask yourself, what is the goal of improving the direct materials data?  Cost savings? Sourcing efficiency? Improved insight through reporting and analysis?  To answer these questions and achieve success, engineering and procurement need to work together to obtain the answers. First you need to know what are the overall company goals? From there all the following questions can be answered.

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Topics: Governance, Classification, Product Analytics, Manufacturer Parts, Data Cleansing

Outsourcing Data Cleansing: Top 5 Best Practices

Posted by Richard Turner on Jun 27, 2016 2:14:37 PM

It may seem like a scary proposition to send your data outside your organization to be improved.  Who do you send it too, what do you provide them, how much is it going to cost, how do you know if the data is correct, how can you make it successful.  At Convergence Data we have learned to bridge this gap between outsourced data cleansing operations and US based companies – to make it a successful experience.  There are some basic practices to follow that we have learned we can share.

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Topics: Cleansing Data, Classification, Product Analytics, outsourcing, Data Cleansing

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